Disney Offers 60 Character.AI Staff $60 Million in Annual Pay After Bankruptcy
Updated
Updated · TechCrunch · Oct 18
Disney Offers 60 Character.AI Staff $60 Million in Annual Pay After Bankruptcy
3 articles · Updated · TechCrunch · Oct 18
Summary
At least 60 Character.AI employees — a majority of the startup’s workforce — received Disney job offers, and the legal filing said the vast majority accepted.
Disney’s package values those hires at an estimated $60 million a year and accompanies a previously disclosed agreement to buy some Character.AI assets for $20 million.
The deal followed Character.AI’s bankruptcy filing earlier this week, with former CEO Karandeep Anand having already joined Disney as its first CTO.
Character.AI said high costs, potential litigation liabilities and regulatory scrutiny pushed it into bankruptcy despite a large user base; the Disney agreement remains a stalking horse bid that could be topped.
As Character.AI faces bankruptcy in late 2026, will Disney's strategic talent grab trigger a wave of similar liability-free AI acquisitions?
Could the tragic legal battles that financially crippled Character.AI force the entire AI companion industry to drastically rewrite its safety standards?
With Character.AI's potential shutdown looming, what will ultimately happen to the highly sensitive emotional chat data of its 12 million users?